KUALA LUMPUR (Feb 7): Loss-making property developer Tanco Holdings Bhd is buying a 50.1% stake in a real estate online sales submission and processing platform operator for RM20 million cash.
The group said it is acquiring the stake in Gplex Properties Sdn Bhd from Googolplex Holdings Bhd, which will still own the other 49.9% stake after the acquisition.
Apart from the online platform, Tanco said Gplex Properties also owns a 49% stake in a real estate agency called Gplex Realty Sdn Bhd, with the remaining 51% shareholdings controlled by CTL Realty Sdn Bhd. Gplex Properties, however, has board and management control of Gplex Realty.
In a bourse filing on Tuesday (Feb 7), Tanco said the Gplex Properties stake acquistion comes with profit guarantees of RM4.97 million for the financial year ending Dec 31, 2023 (FY23), RM6.33 million for FY24 and RM7.52 million for FY25.
Tanco said it will fund the acquisition via internally-generated funds.
Googolplex Holdings was formerly known as China Guotai Construction Group (M) Sdn Bhd. It is 80.6%-owned by Googolplex Group Sdn Bhd (69.2%) and Googolplex SIG PLT (11.4%), which in turn is controlled by four directors Liang Tiang Kiat, Ong Siang Long, Chao Miew San, Liang Tian Jing and substantial shareholder Lee Pang Say.
Tanco said expansion into property sales agency business will complement and enhance its growth objectives, including potential opportunities with other landbank owners.
The group expects the acquisition to be completed within this month.
Shares of Tanco closed half sen or 1.2% higher at 43 sen on Tuesday, giving the group a market capitalisation of RM766.36 million.